New Legislation To "Blow Up" Federal Health Benefits Program Would Worsen System, Warn Pharmacy Benefit Managers

By Monique Cala
University of New Mexico/Talk Radio News Service

Pharmaceutical Care Management Association President and CEO Mark Merritt told Talk Radio News Service Tuesday that he opposes legislation introduced by Rep. Stephen Lynch (D-Mass.) that would dramatically alter the Federal Employee Health Benefits Program (FEHBP).

“The goal of the legislation is to extensively improve benefits for federal workers. But…in reality it would take a very, very popular program and undermine its ability to save money and offer numerous choices,” said Merritt.

Lynch’s bill, the FEHBP Prescription Drug Integrity, Transparency and Cost Savings Act (HR 4489), would increase oversight of the tools used by pharmacy benefit managers to negotiate reduced drug costs for federal employees. During a House Oversight Committee hearing last week, Lynch suggested that Congress should “blow up” the federal health benefits program. (see video below)



But Merritt said requiring pharmacy benefit managers (PBMs) to openly disclose how they negotiate discounts from drug companies is useless information for the consumer. The legislation would mainly help drug makers and stores find ways to raise prices during the negotiation process.

Merritt compared the transition to that of Medicaid, where prices are subsidized, and unlike PBMs, the government’s main goal is not to negotiate prices.

“What this bill would do is make the federal employees program more like the Medicaid program for the poor with price controls, out of control spending, fewer choices and ultimately a subpar program,” said Merritt. “Certainly not a program that its federal employees have grown accustomed to.”

Merritt said he doesn’t believe Lynch designed the legislation to hurt the program, but suggested the Congressman may not completely understand what his bill would do.

“I think the last thing people with good health benefits want right now, particularly federal employees, is to have Congress come in and micromanage and change their benefits and reduce their choices in an attempt to cut spending on the program.”

Debate Opens Over Who Should Lend TARP Funds To Small Businesses

By Monique Cala University of New Mexico/ Talk Radio News Service

Rep. Nydia Velazquez, (D-N.Y.), who heads the Committee on Small Business, proposed that $30 billion from the Trouble Asset Relief Program that was supposed to go to banks to help with small business lending, go directly to the Small Business Administration instead.

“Taking $30 billion and simply handing it to banks- in hopes that they will make loans- is not sound policy,” said Velazquez. “Small businesses are our best job creators, producing 60 percent of new jobs.”

Assistant Treasury Secretary for Financial Stability Herbert Allison said that the Federal Deposit Insurance Corporation (FDIC) reported that lending by the banking industry fell by $587 billion last year.

“We must improve credit conditions for small businesses,” said Allison.

He went on to say that the $30 billion proposed by President Obama for the Small Business Lending Fund (SBLF) would create incentive for small and mid size banks to accelerate small business lending.

Though no resolution came today, lawmakers are expected to vote on the FDIC proposal, which would allow only banks making less than $10 billion to receive funds.

Treatment Of NASA Employees: A Space Travesty?

By Monique Cala University Of New Mexico/ Talk Radio News Service

Rep. Pete Olson (R-Texas) questioned NASA Administrator Charles Bolden Thursday over what appeared to be a lack of respect shown towards the agency's employees following the release of NASA's budget request for fiscal year 2011.

“There was a statement made by a very senior political appointee in NASA's front office, Mr. Alan Ladwig. He said: 'For those who fuss over President Obama’s Budget for NASA I have two words ‘Bite Me,’" said Olson. “Thats one hell of a message to send to thousands of loyal NASA employees and contractors who have given their life to human space flight.”

Bolden responded to Ladwig's alleged comments, and reassured the committee that Ladwig’s statement was not the message NASA intended to send to its employers or the United States. Bolden told the committee he would look into the claim and take care of what he described as as an 'unacceptable' action.

Rep. Bart Gordon (D-TN) challenged the speed at which NASA employees were informed of the new budget.

“Many Folks in your own agency do not appear to have known what was in the budget request until the very weekend before it was released,” said Gordon. “In addition, it has taken almost a month for Congress to get the NASA budget justification documents, a state of affairs that is not -and should not be- an acceptable way of doing business with regard to such an important national endeavor.”

Bolden apologized for the delay between communication efforts and acknowledged recognizable concern as NASA takes a ‘historic shift.'

“NASA’s exploration efforts will focus not just on our moon, but also on near earth astroids, strategic deep space zones and the planet Mars and it’s moons,” he said.

A full copy of the proposed FY2011 Budget for NASA can be found on the NASA website.

Clinton: Iran Has Refused To 'Live Up To Its Responsibilities'

By Monique Cala University of New Mexico/ Talk Radio News Service

Secretary of State Hillary Clinton told the Senate Foreign Relations Committee Wednesday that Iran has failed to “live up to its responsibilities."

“Iran has left the international community little choice but to impose greater costs for its provocative steps,” said Clinton. “We are now working actively with our partners to prepare and implement new measures to pressure Iran to change its course.”

Along with criticism against Iran, Clinton highlighted the State Department's top priorities, which includes investing in security, development and basic human rights.

“At a time of change and challenge at home and abroad, these investments will enhance the security of Americans, assure the future American leadership, and help build the foundations of peace, stability, and prosperity in the years ahead,” said Clinton.

Several Senators at the hearing asked for U.S. support of women’s rights in the Middle East and an end to the battle against the Lord's Resistance Army in Uganda. Clinton pledged full support of both causes, warning that she did not want to ‘sugar-coat’ how hard would both be.

Homeland Security Secretary Napolitano Defends Department's Budget Cuts

By Monique Cala University of New Mexico/ Talk Radio News Service

Secretary of Homeland Security Janet Napolitano defended the Department's FY2011 Budget Request Wednesday, after members of the Senate Homeland Security Committee expressed concern for decreases in what they called ‘key’ areas.

Sen. Joe Lieberman (I-Conn.), who chairs the committee, questioned the decision to decrease funds allocated for cyber security.

“This budget cuts the spending on cyber security by 5 percent. Key information systems in the private and public sectors are penetrated everyday in our defenses against computer attacks and data theft,” said Lieberman.

“Cyber space is of key concern. The reduction noted is attributable to many things,” Napolitano responded. “One, is that there were one time expanses that we had last year that we do not need to duplicate in 2011.”

Cuts made to the U.S. Coast Guard also came under close scrutiny. Sen. Susan Collins in particular asked U.S. ports would remain safe in light of Guard's $75 million budget reduction.

“Our nation's top intelligence officials recently testified before Congress that it is “certain” that al Qaeda is planning to attempt another attack against the United States within the next six months,” explained Collins.

Collins went on to voice concern with the request for $200 million to provide security in large metropolitan areas in the United States that host trials for suspected terrorists now held at Guatanamo Bay.

“These terrorists could be tried on military bases before military tribunals, without incurring this unnecessary expense and security risk,” said Collins.

Napolitano responded that regardless of where the suspected terrorists are tried, in military or civilian courts, the expense for security will still be close to $200 million.

A full break down of the budget can be found at the DHS web site.